Connect with us
Tuesday,11-November-2025
Breaking News

Business

This is why India’s consumer market is a $1 trillion investment opportunity

Published

on

The fundamentals of the Indian economy remain strong, as RBI Governor Shaktikanta Das recently stated. India’s growth rate is among the fastest in the world, retail inflation has moderated, buffer food stocks are abundant, forex reserves are substantial, and the current account deficit is expected to remain “well within sustainable levels.”

Domestic consumption is making a strong comeback, traditionally one of the main drivers of India’s economic growth. This is great news for businesses of all sizes. Simply put, when consumers spend more, businesses have more capital to invest in, and increased liquidity throughout the system energises complementary sectors and higher-end goods and services.

But what is the significance of this surge in domestic consumption?

One, as the festive season approaches, these numbers are likely to rise even more. Between August and November, when sales of everything from two-wheelers to real estate are at their peak, Indian consumers tend to spend more. Given how quickly consumption has recovered, the figures for the next three quarters will likely be even better.

Two, for better or worse, demand continues to drive India’s growth story. In a typical fiscal year, private expenditure accounts for approximately 55 per cent of the total national GDP. Furthermore, it has a significant impact on the next major growth driver, Gross Fixed Capital Formation (GFCF), which accounts for the money invested by businesses. As a result, strong domestic consumption translates unintentionally into strong economic growth.

Three, rising household consumption will boost demand for goods and services across industries, especially those involving significant amounts of “discretionary” or luxury spending. Product segments influenced by “premiumisation” trends are included in the latter. These include everything from chocolates and alcoholic beverages to laptops and headphones, as well as clothing and cosmetics. In some categories, such as automobiles, demand for premium products has outpaced demand for entry-level variants. In FY22, for example, premium car sales increased 38 per cent year on year, while lower-priced car sales increased only 7 per cent.

Why is luxury spending increasing in India?

Rising consumer incomes and purchasing power are aiding it: average per capita income has already surpassed USD 2,000 and is expected to exceed USD 12,000 by 2047. Furthermore, the rapid growth of the e-commerce sector and digital transactions has increased customer access to the luxury market. Furthermore, as consumers have become more value- and customisation-oriented, previously dominated by HNWIs, premium segments are rapidly diversifying to include Millennials and non-metro consumers. The typical cohort of HNI and NRI customers has also expanded to include affluent middle-class consumers in some segments, most notably luxury housing, due to the proliferation of remote and hybrid working models.

Furthermore, the premium product space is still in its early stages and remains largely untapped. As a result, market participants have numerous opportunities. For example, while the Indian smartphone market fell by 1 per cent year on year in H1CY22, the premium segment increased by 83 per cent. This segment, however, accounts for only 6 per cent of the total smartphone market.

As domestic consumption continues to rise, premiumisation trends will be boosted across other sectors, from quick-service restaurants (QSRs) and home products to hospitality and healthcare. This has happened before. According to Jun Nie and Andrew Palmer’s paper “Consumer Spending in China: The Past and the Future,” the threefold increase in household spending in China between 2000 and 2015 was accompanied by a sevenfold increase in spending on transportation and communication services.

So, where can investors find investment opportunities?

Discretionary consumption and premiumisation will account for a disproportionate share of growth.

Hospitality and tourism players will benefit from increased air travel, increased demand for top-tier hotels and resorts.

The automotive industry’s clientele for premium car models will become more diverse, especially as the EV revolution gains traction.

The prospects for the entertainment sector are just as promising, with people willing to pay for subscription packages and remain loyal customers even in tier-2 and tier-3 cities as long as there is content worth the money.

Companies in real estate, home-related products, and the FMCG personal care space will also benefit greatly.

The key takeaway is that Indian consumer markets will continue to be a key focus area for global public and private equity investors. Existing and new companies will generate hundreds of billions of dollars in market capitalisation.

To summarise, domestic demand will likely continue to drive India’s economic growth story, which will be increasingly influenced by the discretionary spending of a growing cohort of “premium” consumers. This trend presents an important opportunity for investors to get a head start on a veritable 21st-century gold rush.

(The views expressed in this article are personal and that of the authors. The authors head AltG, a firm that Offers Proprietary Research That Clients Leverage to Identify and Execute High Growth Capital Allocation Opportunities. You can reach them at ideas@altgind.com)

Business

Tomato Prices In Mumbai Surge – Know What Are The Current Rates

Published

on

Navi Mumbai: The APMC wholesale vegetable market saw an increase in tomato prices by over 30 percent in first week of November as compared to the prices in October 2025. According to the report, prices of tomatoes in October were sold in APMC at Rs 16 -20 per kg and have now increased to Rs 20-28 per Kg.

The supply of tomatoes have also reduced on Monday, as report by Loksatta stated that only 2238 quintals of tomatoes arrived in the APMC Market.

According to the report, traders said that cold weather and imbalance production of tomatoes led to the increase in price, adding that in the last few days, the supply of goods from Nashik, Pune and Nagar areas also reduced.

According to the report, farmers have cautioned about crop damage caused by unseasonal rainfall and the current cold weather, stating that there is a significant chance that the produced crop’s flowers and buds will fall.

Several other reports added that the price of green peas, cluster beans have also gone up. Price of green peas increased to Rs 280 per kg, cluster beans reached Rs 200 per kg while that of Tinda (Indian round gourd) have rised to Rs 50 for 250 grams.

According to Regional Meteorological Center,Mumbai, the climate in Pune, Nashik is expected to see dry climate till November 15. Indian Meteorological Department (IMD) Mumbai scientist Shubhangi Bhute added that, “there are no signs of unseasonal rainfall currently. With the northeasterly winds prevailing, the temperature will drop. The weather will be dry and skies will be clear.”

Continue Reading

Business

Sensex, Nifty open lower amid mixed global cues

Published

on

Mumbai, Nov 11: The Indian benchmark indices opened mildly in red on Tuesday, amid progress on the US shutdown bill and optimism regarding an India-US trade deal soon.

As of 9.25 am, the Sensex was down 177 points, or 0.21 per cent at 85,338 and the Nifty inched down 51 points, or 0.20 per cent to 25,523.

The broadcap indices performed better than benchmarks, with the Nifty Midcap 100 down only 0.09 per cent and the Nifty Smallcap 100 losing 0.06 per cent.

TCS, Tech Mahindra and Dr Reddy’s Labs were among the major gainers in the Nifty Pack, while losers included Bajaj Finance, Bajaj Finserv, Shriram Finance and Asian Paints.

Sectoral indices were trading mixed with most of them trading with mild negative bias. Nifty IT was the standout gainer up 0.31 per cent, while financial services, FMCG, Pharma and PSU Bank down 0.71 per cent, 0.49 per cent, 0.16 per cent and 0.57 per cent respectively.

“Nasdaq bounced back 2.2 per cent after the AI trade was weak last week. The return from AI stocks may take longer than expected, but there is no bubble in AI stocks, unlike the Tech bubble that crashed in 2000,” said market watchers.

They noted that Nasdaq PE was above 70 and many tech stocks were above 150 in March 2000, and AI stock PE valuations now range from 28 to 51, while Nasdaq’s PE is 32.

Most of the Asia-Pacific markets rose in early trading sessions on Tuesday tracking Wall Street gains on revived optimism regarding artificial intelligence stocks.

The US markets ended in the green zone overnight, as Nasdaq jumped 2.27 per cent, the S&P 500 added 1.54 per cent, and the Dow inched up 0.81 per cent.

In Asian markets, China’s Shanghai index lost 0.46 per cent, and Shenzhen dipped 0.67 per cent, Japan’s Nikkei added 0.43 per cent, while Hong Kong’s Hang Seng Index eased 0.29 per cent. South Korea’s Kospi jumped 1.38 per cent.

On Monday, foreign institutional investors (FIIs) sold equities worth Rs 4,889 crore, while domestic institutional investors (DIIs) were net buyers of equities worth Rs 1,787 crore.

Continue Reading

Business

Jharkhand: Robbery and firing on trader sparks shutdown in Dhanbad market

Published

on

Dhanbad, Nov 10: Traders on Monday launched a massive protest after a businessman was robbed and shot at inside the government-run Market Committee complex in the Barwadda police station area in Dhanbad, Jharkhand, late Sunday evening.

The incident has caused concerns over rising crime in Jharkhand’s coal capital, prompting traders to shut all 417 shops in the market complex for the day.

The attack took place around 8.30 p.m. on Sunday when three bike-borne assailants intercepted trader Shyam Bhimsariya while he was closing his shop.

The miscreants fired at him, snatched a bag containing Rs 4 lakh, and sped off. Bhimsariya narrowly escaped the bullet, which reportedly grazed past him. The incident created panic among shopkeepers and customers, many of whom rushed to safety.

On Monday morning, hundreds of traders assembled at the main gate of the Market Committee complex, raising slogans against the administration and demanding immediate arrests. They alleged that the market, which witnesses a heavy footfall, has long been operating without proper security measures.

The Market Committee complex is one of the busiest business hubs in Dhanbad, recording a daily turnover of Rs 7-8 crore.

“We will not tolerate this kind of atmosphere where traders fear for their lives every evening,” a member of the traders’ association said, adding that if the culprits are not arrested within 48 hours, the protest may spread to other markets across the district.

BJP MP Dhullu Mahto, addressing traders, said criminals are “roaming fearlessly” in Dhanbad. “The morale of criminals has gone up due to weak policing. The police must act immediately to restore confidence among traders,” he said.

Jharia Congress MLA Ragini Singh accused the state government of complete failure on the law and order front. “When crime is discussed in the Assembly, the government remains silent. People are living in fear while criminals are dictating terms,” she remarked.

Outgoing Mayor Chandrashekhar Agarwal demanded urgent security measures in the market area, suggesting that CCTV cameras be installed. He said a permanent police post must be established to prevent the recurrence of such incidents.

Dhanbad District Chamber of Commerce president Chetan Goenka strongly condemned the attack and criticised authorities for ignoring repeated requests for better security.

“It is shocking that a market with a daily business of Rs 7-8 crore has neither CCTV surveillance nor police patrolling. Traders cannot operate under fear. The administration must take permanent measures,” Goenka said.

Continue Reading

Trending